- Trump said that the move would revitalize the American industrial base, create numerous jobs, and strengthen the country’s national and economic security.
- In a separate statement on X, U.S. Commerce Secretary Howard Lutnick said that the Ohio natural gas generation facility is expected to generate 9.2 gigawatts of power.
- Meanwhile, in the Gulf of America, the U.S. and Japan will build a deepwater crude oil export facility that is expected to generate $20 billion to $30 billion annually in crude exports.
U.S. President Donald Trump on Tuesday announced that America’s ‘massive trade deal’ with Japan had officially launched.
In a post on Truth Social, Trump said Japan had begun its first round of investments under a $550 billion commitment to the United States, across three projects: oil and gas development in Texas, power generation in Ohio, and critical minerals in Georgia.
Trump said that the move would revitalize the American industrial base, create numerous jobs, and strengthen the country’s national and economic security.
“The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” Trump said.
Deal Contours
The announcement comes shortly after U.S. Commerce Secretary Howard Lutnick and Japanese Trade Minister Ryosei Akazawa met in Washington earlier this month to work out plans regarding Japan’s first tranche of investments in the U.S.
In a separate statement on X, Lutnick provided details of the plan. The Commerce Secretary said that the Ohio project would be to develop the largest natural gas generation facility in the country, expected to generate 9.2 gigawatts of power.
“We will strengthen grid reliability, expand baseload power, and support American manufacturing with affordable energy,” Lutnick said.
In the Gulf of America, the two countries will build a deepwater crude oil export facility that is expected to generate $20 billion to $30 billion annually in U.S. crude exports, secure export capacity for American refineries, and reinforce the country’s position as the world’s leading energy supplier.
Lutnick added that the critical minerals facility would create synthetic industrial diamond manufacturing capacity in the U.S. which will onshore production 100% of U.S. demand for synthetic diamond grit that would reduce America’s dependence on foreign supply for the critical input in advanced industrial and technological production.
America’s Win
Lutnick said that the projects would deliver thousands of “high-quality” American jobs.
“Japan is providing the capital. The infrastructure is being built in the United States. The proceeds are structured so Japan earns its return, and America gains strategic assets, expanded industrial capacity, and strengthened energy dominance. The future has never been brighter,” he added.
“America is building again. America is producing again. And America is WINNING again,” Trump said in the Truth Social post, adding that the present was an exciting and historic time for the U.S.
Meanwhile, U.S. equities were mixed on Tuesday’s close. The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, closed up 0.16%, the Invesco QQQ Trust ETF (QQQ) declined 0.10% at market close, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended the day 0.12% higher. The tech-heavy Nasdaq-100 declined 0.13% at the end of the trading session.
On Stocktwits, retail sentiment around the S&P 500 ETF was in the ‘bearish’ territory.
The iShares 20+ Year Treasury Bond ETF (TLT) was up by 0.17% at market close, while the iShares 7-10 Year Treasury Bond ETF (IEF) fell 0.01%.
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